Unemployment reaches 10.2%

The US lost 190,000 jobs in October, bringing the unemployment rate to a 26-year high of 10.2%. This news sent both the dollar and the Treasurys higher and the index futures down. The number is higher than expected.

The unemployment rate rose from 9.8 to 10.2 percent in October, and nonfarm payroll employment continued to decline (-190,000), the U.S. Bureau of Labor Statistics reported today. The largest job losses over the month were in construction, manufacturing, and retail trade.

Total nonfarm payroll employment declined by 190,000 in October. In the most recent 3 months, job losses have averaged 188,000 per month, compared with losses averaging 357,000 during the prior 3 months. In contrast, losses averaged 645,000 per month from November 2008 to April 2009. Since December 2007, payroll employment has fallen by 7.3 million.

Construction lost 62,000 jobs while manufacturing shed a thousand less jobs than construction. It was slightly better for retail losing 40,000 jobs. Health care continued to add jobs, giving 29,000 people jobs.

The change in total nonfarm payroll employment for August was revised from 201,000 job losses to 154,000 while that from September was revised from 263,000 to a better 219,000.